Though soaring gold prices had given good returns to investors who bought the yellow metal earlier, demand has taken a beating in India. Retail investment demand for the yellow metal fell by 41 per cent to 43.4 tonne during the second quarter (April-June) of the current calendar year. Investors were deterred by price volatility combined with inflation, which reduced funds available for saving, according to the World Gold Council (WGC).“As expected, the continued high and volatile gold price, together with economies across the globe witnessing inflationary pressures and a tightening of consumer wallets, dampened consumer demand for gold in tonnage terms during the quarter,” WGC chief executive officer James Burton said.Fuelled by inflationary pressure, India’s demand for gold jewellery slipped significantly by 47 per cent during the second quarter of the FY’08, according to WGC. Jewellery demand in India during April-June stood at 118 tonne, down 47 per cent from same period previous year, WGC stated in its report today.
